The Seattle-based digital healthcare startup 98point6 has recently conducted a round of layoffs, although the exact number of employees affected has not been disclosed. Employees affected by the layoffs began posting about their experiences on LinkedIn, with one stating that a majority of the staff was let go. The company has around 100 employees in the U.S. and has called the workforce reduction part of a larger action at the company, with some employees transitioning to Transcarent as part of a partnership.
98point6, founded in 2015 as a virtual primary care provider, experienced significant growth during the pandemic and raised a $118 million Series E round in late 2020. However, the startup underwent an abrupt leadership change in 2021 when co-founder and CEO Robbie Cape was pushed out by the board. In July 2022, the company laid off 10% of its workforce to align with future business needs. The company then sold its virtual care platform and primary care business to Transcarent for $100 million in cash and equity, relaunching as a software-only company focused on licensing its technology to third-party healthcare providers.
In April 2023, 98point6 raised $30 million to support the transition to its new business model, aiming to scale the software business and develop new innovations such as data modeling and artificial intelligence. The company also acquired the remaining assets of Bright.md, a Portland-based asynchronous telehealth provider, in January. Co-founder Robbie Cape, alongside Gordon Cohen and Jeff Greenstein, founded the company, with Greenstein becoming CEO after Cape’s departure. The company is now led by CEO Jay Burrell and currently has no open positions on its job board.
The tech industry experienced a downturn in 2022, leading to widespread layoffs that continued throughout the year, resulting in over 250,000 tech workers losing their jobs. In 2024, companies are still shedding jobs, with over 74,000 jobs cut at more than 250 organizations. Despite the layoffs, 98point6 remains in the No. 46 spot on the GeekWire 200 ranked index of Pacific Northwest startups and won the GeekWire Award for Health Innovation of the Year in 2019. The company has raised nearly $300 million in funding to support its operations.
As part of its efforts to realign its business and focus on licensing its software to other healthcare organizations, 98point6 conducted a recent round of layoffs. The company saw significant growth during the pandemic but underwent leadership changes in 2021, leading to a shift in its business model. Despite the challenges faced by the tech industry with widespread layoffs, 98point6 continues to navigate the changing landscape and focus on innovation in the healthcare technology sector. The company’s strategic acquisitions and fundraising efforts are aimed at supporting its transition to a software-only business model and developing new technologies to better serve the healthcare industry.
